Chapter 14: Management of Operations

Each element of the value chain provides added value to the product. A new enterprise manages its value chain to provide the ultimate product or service to the customer. The firm also moves, stores, and tracks parts and materials through its supply chain, striving to ensure timely, efficient production of the product or service. Information flow along the value chain enables the coordination of the distributed tasks. An effective enterprise manages for operational excellence by developing and communicating measurements of efficiency and timeliness.

Using common communications technologies, new enterprises can build a powerful virtual organization, communicating with a set of partners in a quick and effective manner. This set of partners can work from a common schedule, manage how jointly assigned tasks are allocated, and see how interdependencies affect a common schedule. Interrelated tasks can be better managed across firms, which results in better forecasting and stronger chances of achieving on-time production.